Nationwide welcomes changes to make stamp duty fairer for most home buyers

Mutual celebrates abolition of unfair slab system

03 December 2014

The Chancellor’s announcement today that a marginal Stamp Duty charging system will be introduced has been welcomed by Nationwide Building Society, particularly as the mutual has been campaigning for Stamp Duty reform on behalf of its members for more than a decade.

Dispensing with the current slab thresholds, where buyers are charged on the total value of the home they are purchasing, the new approach is a system similar to income tax where the higher rate only applies to the value of the property over the threshold.

Home movers buying at the average UK house price of £188,810 would have faced a Stamp Duty bill of £1,888 but will now save around a third under the new system, paying just over £1,276, an upfront saving of over £600.

For those in the Capital buying an average London property costing £401,072, their bill will fall from £12,032 to £10,053, a saving approaching £2,000.

Graham Beale, Nationwide’s Chief Executive, commented: “Nationwide has campaigned for over a decade for reform of the Stamp Duty system, and I am delighted with the changes that the Chancellor has made today. This means for virtually everyone buying a home with a Nationwide mortgage, their tax bill will be lower and easier to predict.

“The introduction of a marginal charging structure will be much fairer for the majority of home buyers, whether first time buyers or home movers, easing their tax burden and reducing the overall cost of buying, when finances are already stretched. Not only is it great news for those buying a home or considering a move, it could also help encourage those previously worried about Stamp Duty costs to actually buy, ensuring continued movement in the housing market.”

About Nationwide Building Society

Nationwide is the world's largest building society as well as the second largest savings and mortgage provider in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

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